Archer Aviation eyes 2026 approval as air taxi rivals battle in court

Archer Aviation could win US regulatory approval for its electric air taxi as soon as this year, but the company's path to commercial flight is tangled in lawsuits with rivals Joby Aviation and Vertical Aerospace.

Electric air taxis are nearing US approval after years of development, yet legal battles between Archer Aviation, Joby Aviation and Vertical Aerospace threaten to delay an industry that has already burned through billions in investor capital.

"Archer Aviation could get approved as soon as this year," Chief Executive Officer Adam Goldstein said on FOX Business on June 21, referring to the company's Midnight eVTOL aircraft. The four-passenger electric vertical takeoff and landing vehicle, designed to cruise at 150 miles per hour with a 100-mile range, is progressing through three of four Federal Aviation Administration type certification stages.

Joby Aviation, Archer's primary rival based an hour away across the San Francisco Bay Area, has advanced through all four certification stages and produces roughly one aircraft per month. The company demonstrated a flight from John F. Kennedy International Airport to Lower Manhattan in April as a preview of future routes. Yet both companies face headwinds: Archer's stock has fallen about 33 percent since the start of the year, while Joby's has dropped nearly 35 percent, reflecting investor skepticism about timelines and profitability.

Archer, with a market capitalization of roughly $4.2 billion, posted $1.6 million in revenue in the first quarter of 2026 against a net loss of $618.2 million in 2025. The company expects to launch commercial service in the United Arab Emirates later this year, where certification requirements are less strict, before targeting the 2028 Summer Olympics in Los Angeles. Joby plans its first passenger service in Dubai in 2026.

Legal Turmoil Threatens Sector Momentum

The courtroom battles have become as intense as the race to certification. In November 2025, Joby sued Archer, accusing it of corporate espionage after a former Joby employee allegedly stole technical information and stakeholder communications. Archer countersued in March, claiming Joby defrauded the US government by misclassifying China-sourced aircraft components as consumer goods such as "hair clips" and "socks" — a case that became known in industry circles as "Sockgate."

A federal judge in California dealt setbacks to both sides on June 5. Magistrate Judge Susan van Keulen dismissed several of Joby's trade secret claims but allowed its core allegation — that Archer misappropriated confidential information about a real estate developer's partnership — to proceed. She threw out all of Archer's counterclaims for fraud and import misclassification, though both sides can refile amended complaints.

Archer separately sued UK-based Vertical Aerospace in February, accusing it of copying the Midnight's design for its Valo aircraft. Both are four-passenger eVTOLs with tilt-rotor propellers, 150-mph cruising speeds and 100-mile ranges. Vertical called the claims "without merit."

Military Applications Open New Revenue Paths

Both companies are adapting their technology for defense. Archer is partnering with Anduril Industries to develop hybrid VTOL aircraft for military applications. Joby has placed aircraft at Edwards and MacDill Air Force Bases. The defense pivot provides an alternative revenue stream as commercial certification timelines stretch.

The Trump administration launched the eVTOL Integration Pilot Program earlier this year to accelerate deployment, but no company has completed the rigorous FAA type certification required to fly passengers commercially in the US. The Advanced Air Mobility Reality Index, created by SMG Consulting, tracks the likelihood of eVTOL promises becoming reality — and the index reflects the industry's persistent gap between ambition and execution.

For investors, the key question is whether FAA certification arrives before cash runs out. Both companies are burning capital on legal fees, aircraft development and certification costs simultaneously. The winner of the regulatory race will capture a first-mover advantage in a potentially multibillion-dollar urban air mobility market — but the legal turbulence suggests the industry's takeoff may be bumpier than its proponents project.

This article is for informational purposes only and does not constitute investment advice.